How to Stop Foreclosure: Steps to Help Keep Your Home

You may still be able to stop foreclosure and keep your home, even if you've missed mortgage payments or received a foreclosure notice. Your options depend on how far behind you are, your mortgage, your state's laws, and whether you can afford future payments.

The first step is knowing where you stand. From there, you can organize your finances, explore mortgage assistance, and determine what you can afford.

Four Steps to Help Keep Your Home

1. Know where you stand. Understand your notices, missed payments, and important dates.
2. Get your information together. Gather mortgage details, income, expenses, and financial records.
3. Contact your mortgage servicer. Ask about assistance and the steps needed to apply.
4. Check what you can afford. See whether a proposed payment plan fits your budget.

These steps can overlap. You don't need all your documents before calling your mortgage company.

If a foreclosure sale is scheduled, contact your servicer and seek qualified legal help without waiting to finish the checklist.

Step 1: Know Where You Stand

If you've fallen behind, you may have received letters from your mortgage company. Some are payment reminders. Others are legal notices.

The type of notice matters. It tells you what may have happened and which deadlines you need to check.

What foreclosure notice did you receive?

A Notice of Default does not mean your home is being sold immediately. A Notice of Sale generally identifies an upcoming auction.

The process varies by state.

Judicial vs. nonjudicial foreclosure

There are two common ways foreclosure happens.

Judicial foreclosure: The lender generally files a lawsuit. The foreclosure proceeds through the court system.

Nonjudicial foreclosure: The lender can proceed without filing a foreclosure lawsuit by following the notices and procedures required by state law.

Some states allow both processes. Your state, mortgage documents, and circumstances help determine which rules apply.

How quickly can foreclosure happen?

Missed payments, fees, and legal costs can add up.

For most home mortgages covered by federal servicing rules, foreclosure generally cannot begin until the loan is more than 120 days delinquent, with some exceptions.

This does not mean foreclosure starts automatically on day 121.

Many homeowners have conventional mortgages, including loans owned by Fannie Mae or Freddie Mac. Others have government-backed loans such as FHA or VA mortgages. Federal servicing protections cover many of these loans and other qualifying mortgages, although certain exemptions apply.

Your mortgage type may also affect the assistance programs available to you.

Choose the month of your first missed payment to see how far behind you would be by today's month, and how 30, 60, 90, and 120 days late land on a real calendar.

The timeline shows payment milestones, not predicted foreclosure notices or auction dates. Actual legal deadlines depend on your documents and state law.

Source: CFPB, Regulation X §1024.41.

Why are you suddenly getting so many calls and offers?

After a foreclosure notice becomes public, you may start receiving letters, phone calls, and offers from companies that want to buy your home or provide foreclosure services.

This can feel overwhelming when you're already worried about losing your home.

Some investors and marketing companies monitor public foreclosure records. When a notice is recorded, they may be able to identify your property and contact you.

Not every offer is a scam. But an offer does not mean the sender works for your mortgage company or a government agency.

Watch for warning signs:

• Someone guarantees they can save your home.
• You're asked to sign over your property title.
• You're told to stop talking with your mortgage company.
• Someone claims government affiliation without proof.
• You're pressured to pay improper upfront fees.
• You're asked to sign documents you don't understand.

You don't need to accept an offer simply because someone contacts you.

Source: FTC, Trouble Paying Your Mortgage or Facing Foreclosure?.

Step 2: Get Your Information Together

Having your financial information ready can make conversations with your mortgage company more useful.

Start with what you have. Aim to gather the basics over the next day or two, but don't delay asking for assistance.

Your mortgage and household checklist

If you have a second mortgage or HELOC, gather its statements too.

Reinstatement vs. payoff: What's the difference?

A reinstatement quote generally shows how much you must pay to bring your mortgage current.

A payoff statement shows how much you must pay to satisfy the entire mortgage debt.

Both may include interest and applicable fees. Once foreclosure begins, permitted legal costs and foreclosure fees may increase the amount owed.

Ask your servicer for an itemized quote and check when it expires.

Download a printable PDF: Mortgage Help Document Checklist

Print the checklist and mark items as you find them. Your servicer may request additional documents when you apply for assistance.

Know how much money you have left each month

Write down three numbers:

1. Your monthly take-home income.
2. Your mortgage, debt payments, and living expenses.
3. What's left after paying those expenses.

This helps you understand whether the payment problem is temporary or ongoing.

It can also help you decide whether a repayment plan is realistic.

For example, if you have $200 left each month, a repayment plan requiring another $1,000 may not work without changes to your finances.

You'll use these numbers again in Step 4.

Step 3: Contact Your Mortgage Servicer

Your mortgage servicer collects payments and manages your mortgage account. Its name and phone number are usually on your statement.

Your mortgage company has likely already tried to contact you

Under federal early-intervention requirements, many mortgage servicers must try to reach borrowers who fall behind and send written information about available help.

Check your mail, email, voicemail, and mortgage account dashboard. You may already have messages about payment problems or assistance programs.

If you haven't responded, you can still contact your servicer.

Source: CFPB, Regulation X §1024.39.

What should you ask?

Ask for the mortgage hardship or loss-mitigation department.

Loss mitigation is the process of reviewing ways to resolve mortgage payment problems and avoid foreclosure.

Ask these questions:

• How much do I owe, including fees?
• Has foreclosure started?
• Is a sale scheduled?
• What mortgage assistance is available?
• How do I apply?
• What documents do you need?
• How will I know if my application is complete?
• What deadlines should I know about?

Write down the representative's name, the date, and what you discussed.

Download free printable PDF: Mortgage Servicer Call and Follow-Up Log

Use the log to track requested documents, promised callbacks, and next steps.

What options may help you keep your home?

Your servicer decides which programs are available and whether you qualify.

Source: CFPB, Mortgage Assistance Options.

Why does the 37-day foreclosure rule matter?

When you apply for mortgage assistance, timing matters.

Under federal Regulation X, if a covered servicer receives a complete mortgage-assistance application more than 37 days before a scheduled foreclosure sale, important review and foreclosure-sale protections generally apply.

The servicer may be required to review the available assistance options before moving forward with the sale.

These protections have conditions and exceptions. They do not guarantee approval or permanently stop foreclosure.

The key is to submit the required information as early as possible.

Source: CFPB, Regulation X §1024.41.

What is a loss-mitigation application?

A loss-mitigation application is a request for mortgage assistance. It may include:

• A description of why you fell behind.
• Your income and expenses.
• Details about your mortgage.
• Financial statements and supporting documents.

Your servicer determines which information it needs.

A complete application means you've provided all the information the servicer requires from you to review the available assistance options.

Ask your servicer to confirm:

• Whether your application is complete.
• When it received your information.
• Which documents are still missing.
• What happens next.

Some applications may receive limited review before every document is collected. The dedicated 37-day guide will explain how different application stages affect federal protections.

The Regulation X loss-mitigation requirements cover many residential mortgages, but exceptions apply, including certain small-servicer exemptions. If you are unsure which protections apply, ask your servicer or a qualified housing counselor or attorney.

Free, independent help is available

A HUD-approved housing counselor can help you understand your options, review your finances, and prepare for conversations with your mortgage company.

Find a Local HUD-Approved Housing Counselor to help you.

You can also call HUD's housing counseling referral line at 800-569-4287.

Foreclosure-prevention counseling is generally free.

Step 4: Check What You Can Afford

Stopping foreclosure is important. But the solution also needs to work over time.

A repayment plan may help you catch up without fixing the problem that made you fall behind.

Example: Can this homeowner afford to catch up?

Imagine a homeowner who lost a job, then returned to work at a lower income.

Their monthly budget looks like this:

The homeowner also owes $12,000 in missed payments.

If the servicer offers a hypothetical six-month repayment plan, the extra payment would be $2,000 each month, excluding fees.

With only $200 left in the budget, the household would face an estimated $1,800 monthly shortage.

That doesn't mean the homeowner must sell.

It means this repayment plan is not affordable under the current budget. Another arrangement may produce a different result.

What if your mortgage payment changes?

Before agreeing to a modification or repayment plan, ask:

• What will my new monthly payment be?
• Does it include taxes and insurance?
• What happens to missed payments?
• Could the payment change later?
• How much money will I have left for other needs?

Download free printable PDF: Can I Afford to Keep My Home? Worksheet

Can I Afford My Mortgage? — Mortgage Affordability Calculator

See how your mortgage fits into your monthly budget and what may change if your income or expenses change.

The calculator provides educational estimates, not mortgage-assistance approval or individualized housing counseling.

What if a Foreclosure Sale Is Already Scheduled?

If you've received a notice with an auction date, check that date carefully.

Contact your servicer and consider qualified legal help promptly. Don't assume applying for assistance or listing your home for sale automatically postpones the auction.

Can Chapter 13 bankruptcy stop foreclosure?

Filing bankruptcy generally creates an automatic stay that may temporarily stop foreclosure activity.

Chapter 13 may allow eligible homeowners with regular income to catch up on mortgage payments through a repayment plan.

There is no universal federal rule requiring a Chapter 13 filing seven days before the foreclosure sale.

In some circumstances, a bankruptcy filing may stop foreclosure shortly before an auction. But prior bankruptcy filings, court orders, and state law can change the result.

Once a sale is legally completed, bankruptcy generally will not undo it.

A foreclosure sale and an eviction are also different events. Losing ownership does not always mean you must move out the same day.

If a sale is scheduled, consult a qualified bankruptcy or foreclosure attorney about your specific deadlines.

Source: U.S. Courts, Chapter 13 Bankruptcy Basics.

What if You Cannot Afford to Keep Your Home?

Some hardships are temporary. Others permanently change what a household can afford.

If keeping the home is no longer realistic, you may still have options that help you avoid a completed foreclosure.

These can include selling the home or, when appropriate, exploring a short sale or deed-in-lieu.

Can selling your home stop foreclosure?

A completed sale before foreclosure may allow you to pay off the mortgage and avoid losing the property through an auction.

Selling may not be the outcome you wanted. But if you can no longer afford the home, a planned sale may give you more control over what happens next.

You may be able to:

• Plan your next move. Work toward a closing date that allows time to find housing and arrange a move.
• Keep available equity. Money left after paying loans, liens, and selling costs may help cover rent, deposits, and moving expenses.
• Avoid a completed foreclosure. Paying off the mortgage through a sale may prevent foreclosure-specific credit consequences, although missed payments can still affect your credit.
• Improve future options. Avoiding a completed foreclosure may reduce certain future mortgage restrictions, depending on your credit and the loan program.

These benefits are not guaranteed. A sale must close in time, or a valid postponement or other legal protection must apply.

What if selling won't pay off everything you owe?

A home can be worth more than the first mortgage and still leave a shortage at closing.

Consider this example:

The proceeds don't cover both the mortgage and selling costs.

A short sale may be an option if a mortgage holder agrees to accept less than the debt owed. An experienced short-sale real estate agent can help estimate proceeds and coordinate the required approvals.

A shortage does not automatically mean a short sale will be approved. The treatment of any remaining debt also needs to be confirmed in writing.

What if you have a second mortgage or HELOC?

A second mortgage or home equity line of credit may also be secured by your property.

These loans can reduce the money left from a sale. They may also require separate lienholder approval.

A second mortgage or HELOC lender can sometimes start foreclosure even when the first mortgage is current.

If you have more than one loan, check each account and its notices.

Learn more: What Is a Short Sale in Real Estate?

Need Help Understanding Your Situation?

Your next steps depend on the notices you've received, how far behind you are, and what you can afford.

[Contextual /help component]

Headline: Have questions about stopping foreclosure?

Description: Understand your mortgage situation, organize what you know, and prepare questions for your mortgage servicer or housing counselor.

Suggested question: "I've received a foreclosure notice. What should I understand and prepare next?"

Destination: /help

This is optional. You can use the article and its resources without starting a conversation.

Common Questions About Stopping Foreclosure

What is the fastest way to stop foreclosure?

It depends on how far the process has progressed, the money available, and the law in your state.

Bringing your loan current may resolve the payment default. Certain legal actions may temporarily stop foreclosure without resolving the debt.

When is it too late to stop foreclosure?

There is no single deadline for every homeowner.

Your options depend on the foreclosure stage, the scheduled sale date, and your state's laws. If a sale is near or has already happened, seek qualified legal help.

Can I stop foreclosure without money?

Some assistance options may not require a large payment right away. Free housing counseling may also be available.

Keeping the home over time may still require enough income or other resources to afford the payments.

Does a Notice of Default mean I must move out?

Not necessarily. A Notice of Default is not the same as a completed foreclosure sale or an eviction order.

Can a second mortgage foreclose if the first is current?

Sometimes. A second mortgage or HELOC may have its own payment requirements and foreclosure rights.

Save This Page and Your Documents

Bookmark this page so you can return to the timeline, checklists, and affordability tools.

Keep your mortgage statements, notices, financial records, and servicer communications together. Having the information ready can make future conversations easier.

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Sources and Editorial Notes

Primary sources:

• CFPB — How to Avoid Foreclosure
• CFPB — Regulation X §1024.41
• CFPB — Regulation X §1024.39
• CFPB — Mortgage Assistance Options
• FTC — Trouble Paying Your Mortgage or Facing Foreclosure?
• HUD Exchange — Providing Foreclosure Prevention Counseling
• U.S. Courts — Chapter 13 Bankruptcy Basics